Sectors

Montanaro European Smaller Companies Trust (MTE) has a focused portfolio of growing companies selected for the quality of their business franchise, management, earnings and corporate structure. This emphasis on quality has stood it in good stead as investors have become increasingly nervous. The result is that MTE is the best-performing European smaller companies trust by some margin (see page 13).

European smaller companies lagged larger ones in the second half of 2018, bucking a long-term trend. There may be good reasons for investors’ unease with the European economy, but the structural growth themes that MTE’s portfolio is exposed to should persist regardless.